Tidewater Reports Results For The Three Months Ended December 31, 2017 and The Nine Month Transition Period From April 1, 2017 through December 31, 2017

HOUSTON, March 14, 2018 /PRNewswire/ -- Tidewater Inc.
TDW, -3.60%
announced today a net loss for the three months ended December 31, 2017 (Successor), of $23.6 million, or $1.02 per common share, on revenues of $104.5 million. For the five month period from August 1, 2017 through December 31, 2017 (Successor), the net loss was $39.3 million, or $1.82 per common share, on revenues of $178.8 million.

As more fully explained in the company's Form 10-K for the nine month transition period ended December 31, 2017, upon emergence from Chapter 11 bankruptcy on July 31, 2017, the company adopted fresh start accounting in accordance with applicable accounting and reporting regulations, which resulted in the company becoming a new entity for financial reporting purposes on July 31, 2017. References herein to "Successor" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017, while references to "Predecessor" relate to the financial position and results of operations of the company through July 31, 2017.

Included in the $23.6 million ($1.02 per common share) net loss for the three months ending December 31, 2017 (Successor) were the following:

$16.8 million ($0.72 per common share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the three months ended December 31, 2017.

$2.4 million ($0.10 per common share) of reorganization items related to the company's Chapter 11 proceedings.

Included in the $39.3 million ($1.82 per common share) net loss for the five month period from August 1, 2017 through December 31, 2017 (Successor) were the following:

$16.8 million ($0.78 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the five month period ended December 31, 2017.

$4.3 million ($0.20 per share) of reorganization items related to the company's Chapter 11 proceedings.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $2.6 million of stock-based compensation expense, was $13.3 million. EBITDA for the five month period from August 1, 2017 through December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $3.7 million of stock-based compensation expense and $1.2 million of vessel operating lease expense for vessels returned to their respective owners in connection with the company's Plan of Reorganization, was $17.7 million. (See disclosures related to Non-GAAP measures in other fleet and financial data beginning on page 13 herein.)

John Rynd, President and Chief Executive Officer of Tidewater stated, "The extended weakness in the offshore supply vessel market continued to be reflected in our fourth quarter financial results. While improvements in oil prices are encouraging, our customers have not yet committed to a meaningful increase in offshore exploration and development spending. As we continue to navigate a market that we expect to remain challenging in 2018, the management team remains focused on executing its post-restructuring business plan, including additional cost reductions, a targeted rationalization of the owned fleet, preserving a low-leverage balance sheet and maintaining a strong liquidity position."

Tom Bates, Chairman of the Board of Directors, added, "I would like to again thank Larry Rigdon for his leadership of the business during his tenure as interim President and Chief Executive Officer. Significant progress has been made in achieving the company's near-term objective of reaching a cash flow breakeven. John, Larry and I look forward to working with our fellow directors on behalf of all Tidewater stakeholders."

Tidewater will hold a conference call to discuss results for the three months ended December 31, 2017 on Thursday, March 15, 2018, at 10:00 a.m. Central Time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the "Tidewater" call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central Time on March 15, 2018, and will continue until 11:59 p.m. Central Time on March 17, 2018. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.). The conference call ID number is 46593166.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (www.tdw.com). The online replay will be available until April 15, 2018.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involve numerous risks and uncertainties that may cause the company's actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Risk Factors" section of Tidewater's recent Forms 10-Q and 10-K.

Tidewater owns and operates one of the largest fleets of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production activities worldwide.

Note: all per-share amounts are stated on a diluted basis.

Financial information is displayed on the next page.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(In thousands, except share and per share data)

Successor

Predecessor

Three Months

Three Months

Ended

Ended

December 31, 2017

December 31, 2016

Revenues:

Vessel revenues

$

101,313

125,120

Other operating revenues

3,140

4,095

104,453

129,215

Costs and expenses:

Vessel operating costs

68,201

82,358

Costs of other operating revenues

1,519

2,714

General and administrative (A)

30,373

34,151

Vessel operating leases

91

8,441

Depreciation and amortization

12,195

41,302

Gain on asset dispositions, net

(6,612)

(6,139)

Asset impairments

16,777

253,422

122,544

416,249

Operating loss

(18,091)

(287,034)

Other income (expenses):

Foreign exchange gain (loss)

(349)

2,970

Equity in net earnings of unconsolidated companies

825

1,557

Interest income and other

1,898

1,437

Reorganization items (B)

(2,419)

—

Interest and other debt costs

(7,769)

(18,587)

(7,814)

(12,623)

Loss before income taxes

(25,905)

(299,657)

Income tax (benefit) expense

(2,706)

(2,884)

Net loss

$

(23,199)

(296,773)

Less: Net income (loss) attributable to noncontrolling interests

374

903

Net loss attributable to Tidewater Inc.

$

(23,573)

(297,676)

Basic loss per common share

$

(1.02)

(6.32)

Diluted loss per common share

$

(1.02)

(6.32)

Weighted average common shares outstanding (C)

23,137,909

47,068,079

Dilutive effect of stock options and restricted stock

—

—

Adjusted weighted average common shares

23,137,909

47,068,079

Note (A): Restructuring-related professional services costs for the three months ended December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.

Note (B): Restructuring-related professional services and sale leaseback redelivery costs included in reorganization items for the three months ended December 31, 2017 (Successor) were $2.0 million and $0.4 million, respectively.

Note (C): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(In thousands, except share and per share data)

Successor

Predecessor

Period from

Period from

August 1, 2017

April 1, 2017

Nine Months

through

through

Ended

December 31, 2017

July 31, 2017

December 31, 2016

Revenues:

Vessel revenues

$

171,884

146,597

426,911

Other operating revenues

6,869

4,772

13,951

178,753

151,369

440,862

Costs and expenses:

Vessel operating costs

120,502

116,438

278,326

Costs of other operating revenues

3,792

2,348

10,040

General and administrative (D)

46,619

41,832

104,152

Vessel operating leases

1,215

6,165

25,323

Depreciation and amortization

20,337

47,447

129,699

Gain on asset dispositions, net

(6,616)

(3,561)

(18,035)

Asset impairments

16,777

184,748

419,870

202,626

395,417

949,375

Operating loss

(23,873)

(244,048)

(508,513)

Other income (expenses):

Foreign exchange loss

(407)

(3,181)

(2,302)

Equity in net earnings of unconsolidated companies

2,130

4,786

2,869

Interest income and other

2,771

2,384

3,605

Reorganization items (E)

(4,299)

(1,396,905)

—

Interest and other debt costs

(13,009)

(11,179)

(54,018)

(12,814)

(1,404,095)

(49,846)

Loss before income taxes

(36,687)

(1,648,143)

(558,359)

Income tax (benefit) expense

2,039

(1,234)

4,680

Net loss

$

(38,726)

(1,646,909)

(563,039)

Less: Net income attributable to noncontrolling interests

540

—

2,224

Net loss attributable to Tidewater Inc.

$

(39,266)

(1,646,909)

(565,263)

Basic loss per common share

$

(1.82)

(34.95)

(12.01)

Diluted loss per common share

$

(1.82)

(34.95)

(12.01)

Weighted average common shares outstanding (F)

21,539,143

47,121,330

47,067,887

Dilutive effect of stock options and restricted stock

—

—

—

Adjusted weighted average common shares

21,539,143

47,121,330

47,067,887

Note (D): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.

Note (E): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.

Reorganization items for the four month period from April 1, 2017 through July 31, 2017 (Predecessor) of $1.4 billion include (i) $1.8 billion of fresh start accounting adjustments, (ii) the establishment of a reserve in regards to sale leaseback claims of $323.6 million and the write-off of leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of sale leaseback-related deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (iii) $94.8 million of make-whole claims on the Senior Notes and $5.2 million of debt issue costs and (iv) restructuring-related professional services costs incurred subsequent to the Petition Date of $28.0 million. Offsetting these reorganization charges is a gain on settlement of liabilities subject to compromise of $767.6 million.

Note (F): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.

TIDEWATER INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

Successor

Predecessor

December 31,

March 31,

ASSETS

2017

2017

Current assets:

Cash and cash equivalents

$

432,035

706,404

Restricted cash

21,300

—

Trade and other receivables, less allowance for doubtful accounts of $1,800 and $16,165 as of December 31, 2017 and March 31, 2017, respectively

Changes in investments in, at equity, and advances tounconsolidated companies

(4,531)

(4,252)

(2,551)

Compensation expense - stock-based

3,731

1,707

4,166

Changes in operating assets and liabilities, net:

Trade and other receivables

2,312

6,286

53,778

Changes in due to/from affiliate, net

(2,373)

1,301

(4,132)

Marine operating supplies

1,229

88

2,693

Other current assets

10,305

(1,840)

(6,065)

Accounts payable

(1,259)

8,157

1,341

Accrued expenses

(24,896)

17,245

(27,954)

Accrued property and liability losses

(176)

(822)

253

Other current liabilities

(4,026)

(2,337)

(22,798)

Other liabilities and deferred credits

(1,089)

2,884

(4,541)

Other, net

(5,830)

4,932

(3,014)

Net cash used in operating activities

(35,546)

(21,587)

(40,329)

Cash flows from investing activities:

Proceeds from sales of assets

32,742

2,172

12,333

Additions to properties and equipment

(9,834)

(2,265)

(17,144)

Payments related to novated vessel construction contract

—

5,272

—

Refunds from cancelled vessel construction contracts

—

—

25,565

Net cash provided by investing activities

22,908

5,179

20,754

Cash flows from financing activities:

Principal payment on long-term debt

(1,176)

(5,124)

(7,337)

Cash payments to creditors pursuant to the plan of reorganization

(93,719)

(122,806)

—

Cash received for issuance of common stock

2

—

—

Other

—

(1,200)

(1,722)

Net cash used in financing activities

(94,893)

(129,130)

(9,059)

Net change in cash and cash equivalents

(107,531)

(145,538)

(28,634)

Cash and cash equivalents at beginning of period

560,866

706,404

678,438

Cash and cash equivalents at end of period

$

453,335

560,866

649,804

Supplemental disclosure of cash flow information:

Cash paid during the period for:

Interest, net of amounts capitalized

$

8,223

1,577

62,469

Income taxes

$

4,654

4,740

24,749

Supplemental disclosure of non-cash investing activities:

Additions to properties and equipment

$

—

—

5,330

Note (G): Net loss includes restructuring-related professional services costs and costs related to the re-delivery of sale leaseback vessels to their respective owners for the five month period from August 1, 2017 through December 31, 2017 (Successor), the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), of $4.3 million, $34.7 million and $12.2 million, respectively.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EQUITY

Accumulated

Additional

Retained

other

Non

Common

paid-in

earnings

comprehensive

controlling

(In thousands)

stock

capital

(deficit)

loss

interest

Total

Balance at March 31, 2016 (Predecessor)

$

4,707

166,604

2,135,075

(6,866)

6,034

2,305,554

Total comprehensive loss

—

—

(660,118)

(3,478)

10,107

(653,489)

Stock option activity

—

1,146

—

—

—

1,146

Amortization/cancellation of restricted stock units

5

(2,529)

372

—

—

(2,152)

Balance at March 31, 2017 (Predecessor)

$

4,712

165,221

1,475,329

(10,344)

16,141

1,651,059

Total comprehensive loss

—

—

(1,646,909)

(2,435)

—

(1,649,344)

Stock option expense

—

390

—

—

—

390

Cancellation/forfeiture of restricted stock units

—

1,254

—

—

—

1,254

Amortization of restricted stock units

—

2

—

—

—

2

Cash paid to noncontrolling interests

—

—

—

—

(1,200)

(1,200)

Balance at July 31, 2017 (Predecessor)

$

4,712

166,867

(171,580)

(12,779)

14,941

2,161

Cancellation of Predecessor equity

(4,712)

(166,867)

171,580

12,779

(13,266)

(486)

Balance at July 31, 2017 (Predecessor)

$

—

—

—

—

1,675

1,675

Issuance of Successor common stock and warrants

$

18

1,055,391

—

—

—

1,055,409

Balance at August 1, 2017 (Successor)

$

18

1,055,391

—

—

1,675

1,057,084

Total comprehensive loss

—

—

(39,266)

(147)

540

(38,873)

Issuance of common stock

4

(2)

—

—

—

2

Amortization/cancellation of restricted stock units

—

3,731

—

—

—

3,731

Balance at December 31, 2017 (Successor)

$

22

1,059,120

(39,266)

(147)

2,215

1,021,944

The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

The company's other operating profit (loss) consists of the following:

Successor

Predecessor

Three Months

Three Months

Ended

Ended

(In thousands)

December 31, 2017

December 31, 2016

Other operating revenues

$

3,140

4,095

Costs of other marine revenues

(1,519)

(2,714)

General and administrative expenses - other operating activities

(401)

(410)

Depreciation and amortization - other operating activities

(415)

(855)

Other operating profit

$

805

116

Successor

Predecessor

Period from

Period from

August 1, 2017

April 1, 2017

Nine Months

through

through

Ended

(In thousands)

December 31, 2017

July 31, 2017

December 31, 2016

Other operating revenues

$

6,869

4,772

13,951

Costs of other marine revenues

(3,792)

(2,348)

(10,040)

General and administrative expenses - other operating activities

(636)

(409)

(1,659)

Depreciation and amortization - other operating activities

(827)

(1,139)

(3,575)

Other operating profit (loss)

$

1,614

876

(1,323)

The company's operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

Successor

Predecessor

Three Months

Three Months

Ended

Ended

December 31, 2017

December 31, 2016

(In thousands)

%

%

Vessel operating profit (loss):

Americas

$

1,052

1%

(6,242)

(5%)

Middle East/Asia Pacific

(493)

(<1%)

(8,368)

(6%)

Africa/Europe

835

<1%

(11,559)

(9%)

1,394

1%

(26,169)

(20%)

Other operating profit (loss)

805

1%

116

(<1%)

2,199

2%

(26,053)

(20%)

Corporate general and administrative expenses (I)

(10,026)

(10%)

(13,133)

(10%)

Corporate depreciation

(99)

(<1%)

(565)

(1%)

Corporate expenses

(10,125)

(10%)

(13,698)

(11%)

Gain on asset dispositions, net

6,612

6%

6,139

5%

Asset impairments

(16,777)

(15%)

(253,422)

(196%)

Operating loss

$

(18,091)

(17%)

(287,034)

(222%)

Foreign exchange gain (loss)

(349)

(<1%)

2,970

2%

Equity in net earnings of unconsolidated companies

825

<1%

1,557

1%

Interest income and other, net

1,898

2%

1,437

1%

Reorganization items (J)

(2,419)

(2%)

—

—

Interest and other debt costs

(7,769)

(8%)

(18,587)

(14%)

Loss before income taxes

$

(25,905)

(25%)

(299,657)

(232%)

Note (I): Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.

Note (J): Reorganization items for the three months ended December 31, 2017 (Successor) included $2.0 million of restructuring-related professional services and sale leaseback redelivery costs of $0.4 million.

Successor

Predecessor

Period from

Period from

August 1, 2017

April 1, 2017

Nine Months

through

through

Ended

December 31, 2017

July 31, 2017

December 31, 2016

(In thousands)

%

%

%

Vessel operating profit (loss):

Americas

$

(1,599)

(1%)

(22,549)

(15%)

(11,745)

(3%)

Middle East/Asia Pacific

451

<1%

(1,434)

(1%)

(19,146)

(4%)

Africa/Europe

811

1%

(21,508)

(14%)

(38,940)

(9%)

(337)

(<1%)

(45,491)

(30%)

(69,831)

(16%)

Other operating profit (loss)

1,614

1%

876

1%

(1,323)

(<1%)

1,277

1%

(44,615)

(29%)

(71,154)

(16%)

Corporate general and administrative expenses (K)

(14,823)

(8%)

(17,542)

(12%)

(33,632)

(8%)

Corporate depreciation

(166)

(<1%)

(704)

(<1%)

(1,892)

(<1%)

Corporate expenses

(14,989)

(8%)

(18,246)

(12%)

(35,524)

(8%)

Gain on asset dispositions, net

6,616

3%

3,561

2%

18,035

4%

Asset impairments

(16,777)

(9%)

(184,748)

(122%)

(419,870)

(95%)

Operating loss

$

(23,873)

(13%)

(244,048)

(161%)

(508,513)

(115%)

Foreign exchange loss

(407)

(<1%)

(3,181)

(2%)

(2,302)

(1%)

Equity in net earnings of unconsolidated

companies

2,130

1%

4,786

3%

2,869

<1%

Interest income and other, net

2,771

1%

2,384

2%

3,605

1%

Reorganization items (L)

(4,299)

(3%)

(1,396,905)

(923%)

—

—

Interest and other debt costs

(13,009)

(7%)

(11,179)

(8%)

(54,018)

(12%)

Loss before income taxes

$

(36,687)

(21%)

(1,648,143)

(1089%)

(558,359)

(127%)

Note (K): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.

Note (L): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.

Reorganization items for the four month period from April 1, 2017 through July 31, 2017 (Predecessor) of $1.4 billion include (i) $1.8 billion of fresh start accounting adjustments, (ii) the establishment of a reserve in regards to sale leaseback claims of $323.6 million and the write-off of leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of sale leaseback-related deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (iii) $94.8 million of make-whole claims on the Senior Notes and $5.2 million of debt issue costs and (iv) restructuring-related professional services costs incurred subsequent to the Petition Date of $28.0 million. Offsetting these reorganization charges is a gain on settlement of liabilities subject to compromise of $767.6 million.

For the following tables for illustrative purposes, the company has combined the Successor and Predecessor results to derive combined results for the three months ended September 30, 2017. The combination was generated by addition of comparable financial statement line items. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor may not be comparable to those of the Predecessor.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

Revenues:

Vessel revenues

$

101,313

104,911

112,257

156,905

125,120

Other operating revenues

3,140

5,652

2,849

3,844

4,095

104,453

110,563

115,106

160,749

129,215

Costs and expenses:

Vessel operating costs

68,201

84,966

83,773

80,845

82,358

Costs of other operating revenues

1,519

3,036

1,585

2,689

2,714

General and administrative (M)

30,373

25,019

33,059

41,727

34,151

Vessel operating leases

91

1,747

5,542

8,443

8,441

Depreciation and amortization

12,195

19,302

36,287

37,592

41,302

Gain on asset dispositions, net

(6,612)

(376)

(3,189)

(6,064)

(6,139)

Asset impairments

16,777

21,325

163,423

64,857

253,422

122,544

155,019

320,480

230,089

416,249

Operating loss

(18,091)

(44,456)

(205,374)

(69,340)

(287,034)

Other income (expenses):

Foreign exchange gain (loss)

(349)

(2,082)

(1,157)

664

2,970

Equity in net earnings of unconsolidated companies

825

1,574

4,517

2,841

1,557

Interest income and other

1,898

1,577

1,680

1,588

1,437

Reorganization items (M)

(2,419)

(1,085,609)

(313,176)

—

—

Interest and other debt costs

(7,769)

(5,814)

(10,605)

(21,008)

(18,587)

(7,814)

(1,090,354)

(318,741)

(15,915)

(12,623)

Loss before income taxes

(25,905)

(1,134,810)

(524,115)

(85,255)

(299,657)

Income tax (benefit) expense

(2,706)

3,216

295

1,717

(2,884)

Net loss

$

(23,199)

(1,138,026)

(524,410)

(86,972)

(296,773)

Less: Net income (loss) attributable to noncontrolling interests

374

142

24

7,883

903

Net loss attributable to Tidewater Inc.

$

(23,573)

(1,138,168)

(524,434)

(94,855)

(297,676)

Basic loss per common share

$

(1.02)

—

—

—

—

Diluted loss per common share

$

(1.02)

—

—

—

—

Weighted average common shares outstanding (N)

23,137,909

—

—

—

—

Dilutive effect of stock options and restricted stock

—

—

—

—

—

Adjusted weighted average common shares

23,137,909

—

—

—

—

Vessel operating margin

$

33,112

19,945

28,484

76,060

42,762

Note (M): Restructuring-related items:

Restructuring-related professional services costs included in general and administrative expenses

$

—

—

6,709

16,805

5,188

Restructuring-related professional services costs included in reorganization items

Note (N): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens. Common shares and New Creditor Warrants and the sum of common shares and New Creditor Warrants outstanding at December 31, 2017 were 22,115,916, 7,884,006 and 29,999,922, respectively.

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

December 31,

September 30,

June 30,

March 31,

December 31,

ASSETS

2017

2017

2017

2017

2016

Current assets:

Cash and cash equivalents

$

432,035

459,978

683,778

706,404

649,804

Restricted Cash

21,300

—

—

—

—

Trade and other receivables, net

114,184

120,271

116,612

123,262

174,335

Due from affiliate

230,315

245,056

252,810

262,652

287,592

Marine operating supplies

28,220

31,083

31,097

30,560

30,720

Other current assets

19,130

14,813

34,619

18,409

22,053

Total current assets

845,184

871,201

1,118,916

1,141,287

1,164,504

Investments in, at equity, and advances to unconsolidated companies

29,216

25,729

49,216

45,115

42,516

Net properties and equipment

837,520

868,689

2,659,314

2,864,762

3,009,407

Deferred drydocking and survey costs

3,208

388

—

—

—

Other assets

31,052

46,845

92,134

139,535

98,772

Total assets

$

1,746,180

1,812,852

3,919,580

4,190,699

4,315,199

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

38,497

39,439

35,087

31,599

50,754

Accrued expenses

54,806

61,115

63,155

78,121

67,412

Due to affiliate

99,448

112,642

121,037

132,857

132,836

Accrued property and liability losses

2,585

2,774

2,758

3,583

3,574

Current portion of long-term debt

5,103

5,174

10,106

2,034,124

2,036,060

Other current liabilities

19,693

38,041

28,029

48,429

50,274

Total current liabilities

220,132

259,185

260,172

2,328,713

2,340,910

Long-term debt

443,057

445,677

80,863

—

—

Deferred income taxes

—

—

—

46,013

56,375

Accrued property and liability losses

2,471

2,607

2,776

10,209

11,113

Other liabilities and deferred credits

58,576

62,569

60,382

154,705

159,237

Liabilities subject to compromise

—

—

2,389,557

—

—

Commitments and Contingencies

Equity:

Common stock

22

21

4,712

4,712

4,707

Additional paid-in capital

1,059,120

1,056,563

165,516

165,221

171,018

Retained earnings

(39,266)

(15,693)

950,895

1,475,329

1,570,027

Accumulated other comprehensive loss

(147)

82

(10,258)

(10,344)

(6,446)

Total stockholders' equity

1,019,729

1,040,973

1,110,865

1,634,918

1,739,306

Noncontrolling interests

2,215

1,841

14,965

16,141

8,258

Total equity

1,021,944

1,042,814

1,125,830

1,651,059

1,747,564

Total liabilities and equity

$

1,746,180

1,812,852

3,919,580

4,190,699

4,315,199

Due from affiliate, net of due to affiliate

$

130,867

132,414

131,773

129,795

154,756

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

REVENUE BY VESSEL CLASS

(In thousands):

Americas fleet:

Deepwater (O)

$

17,062

14,102

17,313

62,831

30,846

Towing-supply

8,263

9,319

11,274

14,738

11,905

Other

3,010

2,989

3,300

2,964

2,826

Total (O)

$

28,335

26,410

31,887

80,533

45,577

Middle East/Asia Pacific fleet:

Deepwater

$

9,066

8,393

10,701

9,433

8,605

Towing-supply

14,110

16,823

17,065

17,245

17,628

Other

—

—

—

—

—

Total

$

23,176

25,216

27,766

26,678

26,233

Africa/Europe fleet:

Deepwater

$

24,753

25,170

22,158

23,032

21,748

Towing-supply

20,448

23,173

27,019

22,794

26,087

Other

4,601

4,942

3,427

3,868

5,475

Total

$

49,802

53,285

52,604

49,694

53,310

Worldwide fleet:

Deepwater (O)

$

50,881

47,665

50,172

95,296

61,199

Towing-supply

42,821

49,315

55,358

54,777

55,620

Other

7,611

7,931

6,727

6,832

8,301

Total (O)

$

101,313

104,911

112,257

156,905

125,120

Note (O): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total revenue for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

AVERAGE NUMBER OF VESSELS:

Americas fleet:

Deepwater

31

39

41

41

41

Towing-supply

16

19

21

22

22

Other

6

8

8

8

8

Total

53

66

70

71

71

Stacked vessels

(27)

(39)

(35)

(34)

(35)

Active vessels

26

27

35

37

36

Middle East/Asia Pacific fleet:

Deepwater

21

21

22

23

22

Towing-supply

39

43

44

44

46

Other

—

1

1

1

1

Total

60

65

67

68

69

Stacked vessels

(20)

(25)

(25)

(24)

(30)

Active vessels

40

40

42

44

39

Africa/Europe fleet:

Deepwater

44

43

41

41

42

Towing-supply

41

44

44

43

43

Other

31

33

37

38

38

Total

116

120

122

122

123

Stacked vessels

(42)

(42)

(49)

(54)

(50)

Active vessels

74

78

73

68

73

Worldwide fleet:

Deepwater

96

103

104

105

105

Towing-supply

96

106

109

109

111

Other

37

42

46

47

47

Total

229

251

259

261

263

Stacked vessels

(89)

(106)

(109)

(112)

(115)

Active vessels

140

145

150

149

148

Total active

140

145

150

149

148

Total stacked

89

106

109

112

115

Total joint venture and other vessels

8

8

8

8

8

Total

237

259

267

269

271

AVERAGE NUMBER OF LEASED VESSELS INCLUDED IN VESSEL COUNTS ABOVE:

Americas fleet:

Deepwater

—

7

8

8

8

Towing-supply

—

3

3

3

3

Total

—

10

11

11

11

Stacked vessels

—

(7)

(7)

(7)

(6)

Active vessels

—

3

4

4

5

Africa/Europe fleet:

Towing-supply

—

5

5

5

5

Total

—

5

5

5

5

Stacked vessels

—

—

—

(1)

(1)

Active vessels

—

5

5

4

4

Worldwide fleet:

Deepwater

—

7

8

8

8

Towing-supply

—

8

8

8

8

Total

—

15

16

16

16

Stacked vessels

—

(7)

(7)

(8)

(7)

Active vessels

—

8

9

8

9

Note (P): Included in total owned or chartered vessels at December 31, 2017 (Successor), September 30, 2017 (Successor), June 30, 2017 (Predecessor), March 31, 2017 (Predecessor) and December 31, 2016 (Predecessor), were 89, 91, 115, 111, and 116 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of our total fleet utilization statistics.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:

Deepwater

2,893

3,545

3,731

3,690

3,812

Towing-supply

1,441

1,773

1,941

1,980

2,012

Other

574

736

728

720

736

Total

4,908

6,054

6,400

6,390

6,560

Middle East/Asia Pacific fleet:

Deepwater

1,908

1,932

2,001

2,070

2,068

Towing-supply

3,604

3,980

3,974

3,952

4,232

Other

3

92

91

90

92

Total

5,515

6,004

6,066

6,112

6,392

Africa/Europe fleet:

Deepwater

4,072

3,996

3,732

3,650

3,822

Towing-supply

3,719

4,045

4,004

3,886

3,956

Other

2,852

3,021

3,352

3,420

3,496

Total

10,643

11,062

11,088

10,956

11,274

Worldwide fleet:

Deepwater

8,873

9,473

9,464

9,410

9,702

Towing-supply

8,764

9,798

9,919

9,818

10,200

Other

3,429

3,849

4,171

4,230

4,324

Total

21,066

23,120

23,554

23,458

24,226

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:

Deepwater

1,565

2,359

2,110

1,874

1,990

Towing-supply

705

889

849

900

969

Other

206

368

273

270

276

Total

2,476

3,616

3,232

3,044

3,235

Middle East/Asia Pacific fleet:

Deepwater

705

746

702

900

1,179

Towing-supply

1,089

1,435

1,446

1,240

1,455

Other

3

92

91

90

92

Total

1,797

2,273

2,239

2,230

2,726

Africa/Europe fleet:

Deepwater

947

920

1,047

1,310

1,507

Towing-supply

1,652

1,576

1,554

1,637

1,507

Other

1,295

1,382

1,896

1,887

1,620

Total

3,894

3,878

4,497

4,834

4,634

Worldwide fleet:

Deepwater

3,217

4,025

3,859

4,084

4,676

Towing-supply

3,446

3,900

3,849

3,777

3,931

Other

1,504

1,842

2,260

2,247

1,988

Total

8,167

9,767

9,968

10,108

10,595

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:

Deepwater

1,328

1,186

1,621

1,816

1,822

Towing-supply

736

884

1,092

1,080

1,043

Other

368

368

455

450

460

Total

2,432

2,438

3,168

3,346

3,325

Middle East/Asia Pacific fleet:

Deepwater

1,203

1,186

1,299

1,170

889

Towing-supply

2,515

2,545

2,528

2,712

2,777

Other

—

—

—

—

—

Total

3,718

3,731

3,827

3,882

3,666

Africa/Europe fleet:

Deepwater

3,125

3,076

2,685

2,340

2,315

Towing-supply

2,067

2,469

2,450

2,249

2,449

Other

1,557

1,639

1,456

1,533

1,876

Total

6,749

7,184

6,591

6,122

6,640

Worldwide fleet:

Deepwater

5,656

5,448

5,605

5,326

5,026

Towing-supply

5,318

5,898

6,070

6,041

6,269

Other

1,925

2,007

1,911

1,983

2,336

Total

12,899

13,353

13,586

13,350

13,631

Note (Q): Available Days - Active Fleet equals Available Days - Total Fleet less Out-Of-Service - Stacked Days.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

UTILIZATION - TOTAL FLEET:

Americas fleet:

Deepwater

32.2%

20.5%

23.4%

29.7%

32.1%

Towing-supply

39.0

36.1

36.4

41.8

36.4

Other

60.8

45.3

50.0

45.7

37.0

Total

37.6%

28.1%

30.3%

35.2%

34.0%

Middle East/Asia Pacific fleet:

Deepwater

48.7%

44.0%

54.4%

45.9%

35.9%

Towing-supply

57.7

57.1

57.2

54.2

52.9

Other

—

—

—

—

—

Total

54.5%

52.0%

55.4%

50.6%

46.7%

Africa/Europe fleet:

Deepwater

57.2%

58.6%

51.7%

53.6%

42.9%

Towing-supply

43.5

46.4

51.7

42.1

47.4

Other

44.8

42.6

31.3

31.0

37.6

Total

49.1%

49.7%

45.6%

42.5%

42.8%

Worldwide fleet:

Deepwater

47.2%

41.3%

41.1%

42.6%

37.2%

Towing-supply

48.6

48.9

50.9

46.9

47.5

Other

47.4

42.1

33.9

32.8

36.7

Total

47.8%

44.7%

44.0%

42.6%

41.4%

Note (R): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.

Note (T): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates would have been $21,602, $18,374, $14,021 and $11,778, respectively, for the quarter ended March 31, 2017 (Predecessor).

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(In thousands)

2017

2017

2017

2017

2016

Americas

Vessel revenues (U)

$

28,335

26,410

31,887

80,533

45,577

Vessel operating costs:

Crew costs

$

11,190

12,652

14,457

15,761

16,416

Routine repairs and maintenance

2,203

2,210

2,705

2,879

3,017

Major repairs

(144)

4,167

1,136

7

1,435

Insurance and loss reserves

788

605

933

(519)

664

Fuel, lube and supplies

2,413

2,935

3,394

3,896

2,382

Other

1,321

2,307

4,655

3,555

3,216

Total vessel operating costs

$

17,771

24,876

27,280

25,579

27,130

Vessel operating margin ($)

$

10,564

1,534

4,607

54,954

18,447

Vessel operating margin (%)

37.3%

5.8%

14.4%

68.2%

40.5%

Vessel operating lease expense

$

—

62

3,787

6,627

6,626

Vessel depreciation

$

3,386

5,488

10,748

11,297

12,039

Amortization of deferred drydocking and survey costs

$

86

4

—

—

—

Vessel operations general and administrative expenses

$

6,040

5,481

5,771

6,412

6,024

Vessel operating profit (loss)

$

1,052

(9,501)

(15,699)

30,618

(6,242)

Americas - Select operating statistics

Average vessels - Total fleet (V)

53

66

70

71

71

Utilization - Total fleet

37.6%

28.1%

30.3%

35.2%

34.0%

Average vessels - Active fleet (V)

26

27

35

37

36

Utilization - Active fleet

75.8%

69.7%

61.3%

67.3%

67.1%

Average day rates (U)

$

15,372

15,550

16,423

35,756

20,436

Vessels commencing drydocks

3

7

2

2

2

Major repairs expense and deferred drydocking and survey costs:

Major repairs expense

$

(144)

4,167

1,136

7

1,435

Cash paid for deferred drydocking and survey costs

$

554

243

—

—

—

$

410

4,410

1,136

7

1,435

Deferred drydocking and survey costs - beginning balance

$

239

—

—

—

—

Cash paid for deferred drydocking and survey costs

$

554

243

—

—

—

Amortization of deferred drydocking and survey costs

$

86

4

—

—

—

Deferred drydocking and survey costs - ending balance

$

707

239

—

—

—

Note (U): Included in Americas vessel revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas average day rates would have been $18,374 for the quarter ended March 31, 2017.

Note (V): Average leased vessels - Total fleet

—

10

11

11

11

Average leased vessels - Active fleet

—

3

4

4

5

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(In thousands)

2017

2017

2017

2017

2016

Middle East/Asia Pacific

Vessel revenues

$

23,176

25,216

27,766

26,678

26,233

Vessel operating costs:

Crew costs

$

8,666

9,101

9,795

9,495

9,264

Routine repairs and maintenance

1,733

2,387

2,164

2,318

1,801

Major repairs

442

320

511

3,988

1,631

Insurance and loss reserves

771

626

681

(732)

659

Fuel, lube and supplies

2,653

1,725

1,539

2,543

1,568

Other

2,723

2,977

2,908

3,351

3,963

Total vessel operating costs

$

16,988

17,136

17,598

20,963

18,886

Vessel operating margin ($)

$

6,188

8,080

10,168

5,715

7,347

Vessel operating margin (%)

26.7%

32.0%

36.6%

21.4%

28.0%

Vessel operating lease expense

$

—

—

—

—

—

Vessel depreciation

$

2,905

4,028

7,746

8,499

10,677

Amortization of deferred drydocking and survey costs

$

4

—

—

—

—

Vessel operations general and administrative expenses

$

3,772

3,226

3,738

3,380

5,038

Vessel operating profit (loss)

$

(493)

826

(1,316)

(6,164)

(8,368)

Middle East/Asia Pacific - Select operating statistics

Average vessels - Total fleet

60

65

67

68

69

Utilization - Total fleet

54.5%

52.0%

55.4%

50.6%

46.7%

Average vessels - Active fleet

40

40

42

44

39

Utilization - Active fleet

80.9%

83.7%

87.8%

79.7%

81.4%

Average day rates

$

7,705

8,073

8,261

8,623

8,795

Vessels commencing drydocks

5

1

1

5

3

Major repairs expense and deferred drydocking and survey costs:

Major repairs expense

$

442

320

511

3,988

1,631

Cash paid for deferred drydocking and survey costs

$

209

—

—

—

—

$

651

320

511

3,988

1,631

Deferred drydocking and survey costs - beginning balance

$

—

—

—

—

—

Cash paid for deferred drydocking and survey costs

$

209

—

—

—

—

Amortization of deferred drydocking and survey costs

$

4

—

—

—

—

Deferred drydocking and survey costs - ending balance

$

205

—

—

—

—

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(In thousands)

2017

2017

2017

2017

2016

Africa/Europe

Vessel revenues

$

49,802

53,285

52,604

49,694

53,310

Vessel operating costs:

Crew costs

$

17,292

20,395

17,958

16,573

17,704

Routine repairs and maintenance

3,391

3,674

3,338

3,324

3,384

Major repairs

85

2,811

3,990

4,558

1,946

Insurance and loss reserves

1,387

1,273

1,510

(516)

819

Fuel, lube and supplies

4,334

5,181

4,495

2,840

3,832

Other

6,953

9,620

7,604

7,524

8,657

Total vessel operating costs

$

33,442

42,954

38,895

34,303

36,342

Vessel operating margin ($)

$

16,360

10,331

13,709

15,391

16,968

Vessel operating margin (%)

32.9%

19.4%

26.1%

31.0%

31.8%

Vessel operating lease expense

$

91

1,685

1,755

1,816

1,815

Vessel depreciation

$

5,188

8,855

16,398

16,377

17,166

Amortization of deferred drydocking and survey costs

$

112

—

—

—

—

Vessel operations general and administrative expenses

$

10,134

8,386

8,493

9,653

9,546

Vessel operating loss

$

835

(8,595)

(12,937)

(12,455)

(11,559)

Africa/Europe - Select operating statistics

Average vessels - Total fleet (W)

116

120

122

122

123

Utilization - Total fleet

49.1%

49.7%

45.6%

42.5%

42.8%

Average vessels - Active fleet (W)

74

78

73

68

73

Utilization - Active fleet

77.4%

76.6%

76.6%

76.0%

72.7%

Average day rates

$

9,533

9,685

10,413

10,682

11,042

Vessels commencing drydocks

2

8

6

7

4

Major repairs expense and deferred drydocking and survey costs:

Major repairs expense

$

85

2,811

3,990

4,558

1,946

Cash paid for deferred drydocking and survey costs

$

2,259

149

—

—

—

$

2,344

2,960

3,990

4,558

1,946

Deferred drydocking and survey costs - beginning balance

$

149

—

—

—

—

Cash paid for deferred drydocking and survey costs

$

2,259

149

—

—

—

Amortization of deferred drydocking and survey costs

$

112

—

—

—

—

Deferred drydocking and survey costs - ending balance

$

2,296

149

—

—

—

Note (W): Average leased vessels - Total fleet

—

5

5

5

5

Average leased vessels - Active fleet

—

5

5

4

4

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(In thousands)

2017

2017

2017

2017

2016

Worldwide

Vessel revenues (X)

$

101,313

104,911

112,257

156,905

125,120

Vessel operating costs:

Crew costs

$

37,148

42,148

42,210

41,829

43,384

Routine repairs and maintenance

7,327

8,271

8,207

8,521

8,202

Major repairs

383

7,298

5,637

8,553

5,012

Insurance and loss reserves

2,946

2,504

3,124

(1,767)

2,142

Fuel, lube and supplies

9,400

9,841

9,428

9,279

7,782

Other

10,997

14,904

15,167

14,430

15,836

Total vessel operating costs

$

68,201

84,966

83,773

80,845

82,358

Vessel operating margin ($)

$

33,112

19,945

28,484

76,060

42,762

Vessel operating margin (%)

32.7%

19.0%

25.4%

48.5%

34.2%

Vessel operating lease expense

$

91

1,747

5,542

8,443

8,441

Vessel depreciation

$

11,479

18,371

34,892

36,173

39,882

Amortization of deferred drydocking and survey costs

$

202

4

—

—

—

Vessel operations general and administrative expenses

$

19,946

17,093

18,002

19,445

20,608

Vessel operating profit (loss)

$

1,394

(17,270)

(29,952)

11,999

(26,169)

Worldwide - Select operating statistics

Average vessels - Total fleet (Y)

229

251

259

261

263

Utilization - Total fleet

47.8%

44.7%

44.0%

42.6%

41.4%

Average vessels - Active fleet (Y)

140

145

150

149

148

Utilization - Active fleet

78.1%

77.3%

76.2%

74.9%

73.7%

Average day rates (X)

$

10,056

10,162

10,842

15,693

12,461

Vessels commencing drydocks

10

16

9

14

9

Major repairs expense and deferred drydocking and survey costs:

Major repairs expense

$

383

7,298

5,637

8,553

5,012

Cash paid for deferred drydocking and survey costs

$

3,022

392

—

—

—

$

3,405

7,690

5,637

8,553

5,012

Deferred drydocking and survey costs - beginning balance

$

388

—

—

—

—

Cash paid for deferred drydocking and survey costs

$

3,022

392

—

—

—

Amortization of deferred drydocking and survey costs

$

202

4

—

—

—

Deferred drydocking and survey costs - ending balance

$

3,208

388

—

—

—

Note (X): Included in Worldwide vessel revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Worldwide average day rates would have been $11,778 for the quarter ended March 31, 2017.